The Commercial End-User Exemption

CFTC and SEC solicit comments on proposed rules governing the commercial end-user exemption to the clearing requirements of Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Act), titled the Wall Street Transparency and Accountability Act of 2010, became law on July 21, 2010. The Act contains significant changes to the ways in which over-the-counter derivatives are regulated. Transactions identified as "swaps" and "security-based swaps" will be regulated under the Act, and those terms are defined broadly enough to encompass most over-the-counter derivatives. Such transactions will be subject to clearing and exchange trading requirements under the Act, and certain parties to those transactions will be subject to capital, margin, registration, reporting, recordkeeping, and business conduct requirements.